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tv   State of the Union 2013  FOX Business  February 12, 2013 9:00pm-11:00pm EST

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hear from a president who isn't confrontational, who isn't argumentive, more conciliatory, wants to work. who says i understand the private sector, american businessmen and entrepreneurs are what drive economic growth and job creation. the middle class lost jobs. lower classes lost jobs. we need to make a change. we know it is not government. we know there is too much government already. we'll incentivize businesses and incentivize investment and take this country forward into more economic prosperity. i don't think that's what we're going to hear but that would certainly be a breath of fresh air for the american business community. neil: he will talk about the need for more revenue, the need more more taxes. enough already. we gave you that. we'll not give an inch more. are they right to take that stance? >> they have to take that stand. i think we're to the point we can't borrow anymore. we can't tax anymore. if we tax anymore, we have the highest corporate tax rate. most people that the are running subchapter-s corporations, small
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businesses are now paying close to 50% if you're in a state like california, new york, you're paying more than 50% in tax. the top 5% pay over 50% of the income tax revenue in this country. this has to stop. the president has to stop this. and i don't think, i think he understands government. i don't think he understands that a vigorous government requires a vigorous private sector. the only way you will get a vigorous private sector if the government backs off and let's the dynamic energy of the private sector go forward. neil: he will be talking about not only bigger government but smarter government. government can do a lot of good. do you think government can? >> look, we don't need smarter government. we don't need more efficient government. we needless government. people in middle class and people in the lower classes they don't need more government, they need jobs. we need to create jobs. we need the economy to grow so that we can fund these government programs. look, government could be run better. everything could be run
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better but we don't need more government. we need more jobs. we need need more investment. with we need more prosperity. we're not on the path to that. i hope tonight he will take a different course. i'm not expecting it but i'm hopeful. >> thank you. neil: president's cabinet coming in. new addition, john kerry, replacement for hillary clinton as secretary of state. leon panetta the outgoing defense secretary. that hagel confirmation approved in committee is anything but a sure thing. peter barnes, as we await the sergeant of arms to announce the president of the united states. is it true the president will make hacking the debt a priority. talk about the virtues of government and whatever issues not adding to the deficit isn't that going to be the equivalent after war call to republicans? >> well owe is going to talk about the budget and not adding to the deficit as you said, neil but he is going to, once again, try to often
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titlement reforms as part of the so-called balanced approach that he wants to take here. neil: we're having some problem with your audio, peter. maybe we can rich that. meantime, rich edson, this is a battle republicans have to take on, or just dismiss or hope the temperment of the country will improve so they're more open to challenging this president on new spending initiatives whether they add to the deficit or not. what do you think?. >> that's it, neil. when you think of what the president is looking for here. it is not to address the deficit and address the national debt. this is issue of calling increased spending, increased spending in infrastructure. the democratic argument has been to spend on education, spend on infrastructure all these other things to help create economic growth and therefore create revenue to help close the deficit. you're finding a very reluctant republican party on capitol hill, one that still controls the house of
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representatives and one looking for a promise and commitment of spending cut. certainly when it deals with slowing growth or cutting the spending of entitlement programs, they seem committed to that. they say the revenue issue is entirely closed. you heard some republicans sort of hint at perhaps closing some tax loopholes but wanting to do that in a bigger deal that deals with medicare, that deals with overhauling entitlements. what republicans heard from the president so far, they say the president has not gone far enough. this morning house speaker john boehner says the president is afraid to stand up to his own party, the liberals in his party to do what's right for the country and tackle entitlements. democrats on the other hand say they need more revenue, more than the $600 billion that they secured at that deal that passed congress in the wee hours of the 2012 year going into 2013 but you're seeing the same fight break down over the same lines and the president is --. neil: exactly, buddy. >> in the state of the union address the president made a
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justification for what a larger government can and should be doing. neil: peter, i hope things are working with you. i do want to talk to you a little bit about that because i heard from a number of republican guests tonight, if they had a choice between the automatic sequestration cuts and 1.3 trillion that kick in march 1, or tax hikes or tax hikes they will swallow the pill and take the sequestration cuts. >> yeah. the speaker is saying today that he does not want to see the sequestration happen. he does not like sequestration. the president saying the same thing but neither side seems ready to blink yet in this fight. and as a result, you are seeing some republicans who feel that, feel so strongly about government spending that at least sequestration would be better than nothing, even if half of it comes, more than $40 billion this year comes from cutting defense, neil. neil: i get a sense, peter, that republicans and democrats more or less looked at each other, the hell with it, we've been fighting so long, we don't even know what it is to get
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along so we're not. the president will sound very in your face about spending initiatives whether republicans like it or not. the republicans will sound very in your face about another tax increase and here we go again. >> yeah. we were talking to some defense staff folks from the hill the other day in a background briefing and thee said at least on the sequestration part of this, for example, that maybe they do have to go off the sequestration cliff if you will and, that over the 26-day period between march 1st when sequestration kicks in and the republicans have a little bit more leverage with the continuing resolution that has to be approved to continue to fund the government for the rest of the year, that has to be done by march 27th. these staffers telling us they felt in the 26 day period it might be a cooling-off period between the two sides, neil. neil: rich edson, the pressure on marco rubio
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tonight with the republican response, your thoughts? >> absolute pressure. someone who is on track to at least make a bid to be president in 2016 or run for president in 2016. the last few responses that we've seen from republicans, certainly mixed reviews. governor bobby jindal of louisiana, his performance was mostly disappointment to a number of republicans out there. many who saw him as someone who might be a candidate in 2012 to challenge president obama. he is on the national stage. he has been on the national stage before. got very good reviews of a speech he delivered at the republican national convention in august in tampa. so the expectation here is fairly high for marco rubio as someone who is seen, because of his background, because of his makeup, because of his energy, because of the places that in politics have taken him thus far and he is only in his early 40s, that this is someone who is here to shine for republicans. who will be the standard-bearer of the party going forward. so the stakes are certainly
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high especially since republicans failed to recapture the white house in the past election. neil: gentlemen, thank you very much. we're just waiting now the sergeant-at-arms to introduce the president of the united states. there's a procedure for this. we got advance copy of some of the president's remarks. his speech should be about an hour. that is not factoring in applause. with applause it could go back to 61, 62 minutes. the president averages anywhere from 60 applause interruptions to in, 2010, 86 such interruptions. on average barack obama state of the union addresses run 65 to 70 minutes with such interruptions. do you know what president consistently holds the record for speeches before this chamber? the gold, silver and bronze for the longest televised address is to congress go to
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bill clinton, bill clinton and bill clinton. he spoke for an hour and a half in 2000. an hour and 18 minutes in 1999. and an hour and 16 minutes in 1998. but because there were some teleprompter disruptions in 1995, that speech clocked at one hour, 24 minutes is not the record because it was disrupted by technical problems. but the president was so flawless then, that the wrong speech came up in the teleprompter and he remembered what was the right one and off memory read it smoothly, off memory. i mean, i can't care where you are right or left that is pretty cool. i'm not a slave to the prompter. move up here, guys. i'm not a slave to the prompter but that is really cool, right? these used to be written affairs. you're not obligated to give this in a televised address, television in colonial times of course but that if you
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were to time out george washington's remarks, just read them and time them out, his remarks would have been four minutes and seven minutes respectively. father of our country. the whole speech, four minutes, seven minutes. let's say you interrupt with a lot of applause for the father of our country, 10 minutes tops? you sit down and its's over. woodrow wilson one of his first remarks a professor by training. over an hour. didn't have as many applause back then. now more common to have applause. more theatrical events. john kennedy, post-world war ii, among the shorter addresses, 45 to 47 minutes. more applause interruptions, then the president astutely aware getting an address under an hour so americans could have it wrapped up and finished at home. remember it was lyndon johnson who brought all of this into prime time in 1965 and true to form in that first address spoke to close an hour and 15 minutes.
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take full advantage of that. he did him very little good. a year later his popularity averaging 20% because of the vietnam war was on. he was just years away from being done. the hoopla continues with the latest president of the united states around him. >> mr. speaker. the president of the united states. [applause] neil: barack obama entering that room there. some of these people, and peter barnes, i will go to you. you covered this town for many a year, some of these folks have been lined up there all day long, right? i mean, and they wait for that chance to be seen shaking the president's hand. and they just part
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themselves there, right? >> that's right, neil, but, getting on, getting on the aisle there with your democrat or republican, sometimes it's, they want to make sure, regardless of party they get to shake the hand of the president of the united states on a big night like this. i do want to give you a little bit of breaking news from our colleagues at fox news. ed henry talking to some democrats briefed on speech says tonight the president will call for an increase in the minimum wage in his his state of the union address. he will call for raising it from $7.25 an hour currently to $9 per hour according to democrats who have been briefed on this speech. the last time that the minimum wage was raised, neil, by the way was in 2007. during the bush administration and with the support of president bush. so there is one key policy initiative that we know of, another one that we have just learned about here just in the last few minutes, neil. neil: i don't know if we have andy pozner, ck
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restaurant. hope to get him later on his thoughts. i imagine peter, he will not flip over that particularly in this kind of environment, higher minimum wage to businesses that are struggling is advisable but we'll see what happens there. you know, when looking at this, you know, pageantry, rich edson, the president enjoys a 50 plus percent approval rating. but when it comes to americans and the direction of this country, close to 56% don't like the direction it is going. furthermore, six out of 10 americans don't think things will look much better for their kids. so he to fight a tide that says, we re-elected you, we kind of like you, we don't flip over you, we don't flip over the country's fortunes. that is a delicate balancing act, isn't it? >> it is. not like the campaign we're coming off was one of the more positive campaigns in american history though few are these days. there are number of
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challenges we face. people don't feel very good about the direction of the economy. the economy is improving only marginally, slowly. in fact with the sequestration cuts and the tax increases there are expectations we could see continued small business negative growth in the country. job creation that barely keeps up with the pace of population growth. we're not even there. and you know the president we expect will discuss like most presidents do in a second term in their first state of the union about what accomplishments they made in the first term and what they hope to tackle in the second term. there are major questions dealing with deficit reduction. the president's own number of $4 trillion is more than a trillion dollars short of even most generous calculations of what this congress and president have accomplished through spending cuts and tax increases so far. there are other issues the president wants to take on when it comes to immigration and gun control. given this congress's history of cooperation, even though the new congress just took over, but the dynamic we have in this congress,
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there isn't that much history working together to accomplish these issues at least on a large-scale. the president has a number of significant challenges in his office he has to get done. republicans are hoping for a more conciliatory tone from the president but what we've been hearing from reports and aides and others we're not necessarily going to get that tonight. republicans feel as though they haven't got enthat from the president. democrats say they haven't gotten that from the republicans and around and around we go, neil. neil: kent conrad the former north dakota moderate democrat for wont of a better term, the 4 trillion dollar figure was iffy to him. he thought a better starting figure for democrats should have been at least 5 trillion in budget cuts. he wasn't even delineating how you should break it down. five trillion would make a more impressive statement than the 4 trillion. all the speech's math attached to that. but there are not any indications the president will go beyond what he already offered.
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you know the white house staff far better than i, peter, that's about it. that we're not going to go beyond that? >> that's right. that is the number they're sticking with right now, neil. they say they have gotten 2 1/2 trillion dollars worth of deficit reduction with all the deals they have cut with republicans the last couple years and they need another trillion 1/2. and that is the number their economists and some outside economists and others say would be required to at least stablize the debt as a percentage of the gdp going forward. at least at the over the next step years or so. of course beyond the next 10 years it starts looking even worse, if you look at some of those projections because of all the baby boomers retiring and tapping into medicare and social security. neil: all right. now there is a lot of theater and pageantry attached to these annual events, not the least of going through all this over again when the speaker introduces the president and they applaud again. >> thank you.
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>> members of congress, i have the high privilege and distinct honor of presenting to you, the president of the united states. [applause] >> thank you. neil: all right. if you have not eaten dinner yet, go ahead. you have another, i would say 30 minutes to go grab a sandwich, maybe a brewski, come back, exaggerate here just to make the point that they waste a lot of time with this stuff. wonder why john mccain wanted to become president. he hated all the pageantry. kept things short and sweet. we would have been out of there in seven minutes with a little george washington. >> mr. speaker, mr. vice president, members of congress, fellow americans.
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51 years ago john f. kennedy declared to this chamber that the constitution makes us not rivals for power but partners for progress. [applause] it is my task, he said, to report the state of the union. to improve it is the task of us all. tonight thanks to the grit and determination of the american people there is much progress to report. after a decade of grinding war our brave men and women in uniform are coming home. [applause]
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after years of grueling recession our businesses have created over six million new jobs. we buy more american cars than we have in five years. and less foreign oil than we have in 20. [applause] our housing market is healing, our stock market is rebounding, and consumers patience and homeowners enjoy stronger protections than ever before. [applause] so together we have cleared away the rubble of crisis and we can say with renewed confidence that the state of our union is stronger.
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[applause] but we gather here knowing that there are millions of americans whose hard work and dedication have not yet been rewarded. our economy is adding jobs but too many people still can't find full-time employment. corporate profits have skyrocketed to all-time highs but for more than a decade wages and incomes have barely budged. it is our generation's task then to reignite the true engine of america's economic growth, a rising, thriving middle class. [applause] it is, it is our unfinished
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task to restore the basic bargain that built this country, the idea that if you work hard and meet your responsibilities you can get ahead no matter where you come from, no matter what you look like, or who you love. it is our unfinished task to make sure that this government works on behalf of the many and not just the few. that it encourage courages free enper prize, rewards individual initiative and opens the doors of opportunity to every child across this great nation. [applause] the american people don't expect government to solve every problem. they don't expect those of us in this chamber to agree on every issue but they do expect us to put the nation's interests before
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party. [applause] they do expect us to forge reasonable compromise where we can for they know that america moves forward only when we do so together, and that the responsibility of improving this union remains the task of us all. now our work must begin by making some basic decisions about our budget, decisions that will have a huge impact on the strength of our recovery. over the last few years both parties have worked together to reduce the deficit by more than $2.5 trillion. mostly through spending cuts
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but also by raising tax rates on the wealthiest 1% of americans. as a result we are more than halfway towards the goal of $4 trillion in deficit reduction economists say we need to stablize our finances. now we need to finish the job. and the question is how? in 2011 congress passed a law saying that if both parties couldn't agree on a plan to reach our deficit goal about a trillion dollars worth of budget cuts would automatically go into effect this year. these sudden, harsh, arbitrary cuts would jeopardize our military readiness, they would devastate priorities like education and energy and medical research. they would certainly slow our recovery and cost us hundreds of thousands of jobs. that's why democrats, republicans, business
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leaders and economists have already said that these cuts, known here in washington as the sequester, are a really bad idea. now some in congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training, medicare, and social security benefits. that idea is even worse. [applause] yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population and those of us who care deeply about programs like medicare modest reforms.e need for
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otherwise our retirement programs will crowd out the investments we need for our children and jeopardize the promise of a secure retirement for future generations. but we can't ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and the most powerful. [applause] we won't grow the middle class simply by shifting the cost of health care or college on to families that are already struggling, or by forcing communities to lay off more teachers and more cops and more firefighters. most americans, democrats, republicans, and independents, understand that we can't just cut our way to prosperity. they know that broad based economic growth requires a balanced approach to deficit reduction. with spending cuts and revenue. and with everybody doing
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their freire share. and that's the approach i offer tonight. on medicare i'm prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan simpson-bowles commission. [applause] already the affordable care act is helping to slow the growth of health care costs. [applause] and the reforms i'm proposing go even further. we'll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. [applause] we'll bring down costs by changing the way our government pays for medicare because our medical bills shouldn't be based on the number of tests ordered or days spent in the hospital. they should be based on the quality of care that our seniors receive. [applause]
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and i am open to additional reforms from both parties so long as they don't violate the guaranty of a secure retirement. our government shouldn't make promises we can not keep but we must keep the promises we've already made. [applause] to hit the rest of our deficit reduction target we should do what leaders in both parties have already suggested and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and the well-connected. after all, why would we choose to make deeper cuts to education and medicare just to protect special interest tax breaks? how is that fair?
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why isn't it deficit reduction is a big emergency justifying making cuts in social security benefits but not closing some loopholes? how does that promote growth? [applause] now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring undo the deficit. [applause] we can get this down. done [applause] the american people deserve a tax code that helps small businesses special less time filling out complicated forms and more time expanding and hiring. a tax code that ensures billing errors with high-powered accountants can't work the system and pay a higher rate than their hard-working secretaries. a tax code that lowers
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incentives to move jobs overseas and lowers tax rates for businesses and manufacturers creating jobs right here in the united states of america. that's what tax reform can deliver. that's what we can do together. [applause] i realize that tax reform and entitlement reform will not be easy. the politics will be hard for both sides. none of us us will get 100% of what we want. but the alternative will cost us jobs, hurt our economy, visit hardship on millions of hard-working americans. so let's set party interests aside and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future and let's do it without the brinkmanship that stresses consumers and scares off investors, the
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greatest nation on earth -- [applause] the greatest nation on earth can not keep conducting its business by drifting from one manufactured crisis to the next. [applause] we can't do it. let's agree, let's agree right here right now to keep the people's government open and pay our bills on time and always uphold the full faith and credit of the united states of america. [applause] the american people have worked too hard for too long rebuilding from one crisis to see their elected officials cause another [applause] now, most of us agree that a plan to reduce the deficit
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must be part of our agenda but let's be clear. deficit reduction alone is not an economic plan. [applause] a growing economy that creates good, middle class jobs, that must be the north star that guideses our efforts. [applause] every day we should ask ourselves three questions as a nation. how do we attract more jobs to our shores? how do we equip our people with the skills they need to get those jobs? and how do we make sure that hard work leads to a decent living? now year-and-a-half ago i put forward an american jobs act that independent economists said would create more than one million new jobs and i thanked the last congress for passing some of that agenda. i urge this congress to pass
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the rest. [applause] but, tonight i will lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago. let me repeat. nothing i'm proposing tonight should increase our deficit by a single dime. it is not a bigger government we need but a smarter government that sets priorities and invests in broad-based growth. [applause] that's what we should be looking for. our first priority is making america a magnet for new jobs in manufacturing. after shedding jobs for more than 10 years, our manufacturers have added about 500,000 jobs over the past three. caterpillar is bringing jobs back from japan.
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ford is bringing jobs back from mexico and this year apple will start making macs in america again. [applause] there are things we can do right now to accelerate this trend. last year we created our first manufacturing innovation institute in youngstown, ohio, a once shuttered warehouse is now a state of the art lab where new workers are mastering the 3-d printing that has the potential to revolutionize the way we make almost anything. there is no reason this can't happen in other towns. tonight i'm announcing the launch of three more manufacturing hubs where businesses will partner with the department of defense and energy to turn regions left behind by globalization to global centers of high-tech jobs and i ask this congress to help create a network of 15 of these hubs and guarranty the next revolution in manufacturing is made right here in america. we can get that donn.
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[applause] know if we want to make the best products, we also have to invest in the best ideas. every dollar we invested to map the human genome returned $140 to our economy, every dollar. today our scientists are mapping the human brain to unlock the answers to alzheimer's. they're developing drugs to regenerate damaged organs, devising new materials to make batteries 10 times more powerful. now is not the time to gut these job-creating invests in science and innovation. now is the time to reach a level of research and development not seen since the height of the space race. we need to make those investments. [applause]
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today no area holds more promise than our investments in american energy. after years of talking about it we're finally poised to control our own energy future. we produce more oil at home than we have in 15 years. we have doubled the distance our cars will go on a gallon of gas, and the amount of renewable energy we generate from sources like wind and sole lar -- solar, with tens of thousands of good american jobs to show for it. we produce more natural gas than ever before and nearly everyone's energy bill is lower because of it. and over the last four years our missions of the dangerous carbon pollution that threatens our planet have actually fallen. but for the sake of our children and our future we
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must do more to combat climate change. [applause] now, it's true that no single event makes a trend but the fact is that the 12 hottest years on record have all come in the last 15. heat waves, droughts, wildfires, floods, all are now more frequent and more intense. we can choose to believe that superstorm sandy and, and the most severe drought in decades and the worst wildfires some states have ever seen were all just a freak coincidence, or we can choose to believe in the overwhelming judgment of science and act before it's too late. [applause]
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now the good news is we can make meaningful progress on this issue while driving strong economic growth. i urge this congress to get together, pursue a bipartisan market-based solution to climate change, like the one john mccain and joe lieberman worked on together a few years ago, but, if congress won't act soon to protect future generations, i will. i will direct -- [applause] i will direct my cabinet to come up with executive actions we can take now and in the future to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy. and four years ago other countries dominated the clean energy market and the jobs that came with it and we've begun to change that. last year wind energy added nearly half of all new power
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capacity in america. so let's generate even more. solar energy gets cheaper by the year. let's drive down costs even further. as long as countries like china keep going all-in on clean energy, so must we. and now in the meantime the natural gas boom has led to cleaner power and greater energy independence. we need to encourage that. and that's why my administration will keep cutting red tape and speeding up new oil and gas permits. [applause] that's got to be part of an all of the above plan but i also want to work with this congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and our water. in fact much of our new-found energy is drawn from lands and waters that we, the public, own together. so tonight i propose we use some of our oil and gas revenues to fund and energy security trust that will drive new research in technology to shift our cars
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and trucks off oil for good. if a nonpartisan coalition of ceos and retired generals and admirals can get behind this idea, then so can we. let's take their advice and free our families and businesses from the painful spikes in gas prices we put up with for far too long. i'm also issuing a new goal for america. let's cut in half the energy wasted by our homes and businesses over the next 20 years. [applause] we'll work with the states to do it. those states with the best ideas to create jobs and lower energy bills by constructing more efficient buildings will receive federal support to help make that happen. america's energy sector is just one part of an aging infrastructure badly in need of repair. ask any ceo where they would rather locate and hire, a country with deteriorating roads and bridges or with
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high-speed rail and internet, high-tech schools, self-healing power grids? the ceo of siemens america, a company that brought hundreds of new jobs to north carolina said that if we upgrade our infrastructure, they will bring even more jobs and that's the attitude of a lot of companies all around the world and i know you want these job-creating projects in your district. i see all those ribbbn cuttings. so, tonight, i propose a fix it first program to put people to work as soon as possible on our most urgent repairs, like the nearly 70,000 structurally deficient bridges across the country. [applause]
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and to make sure taxpayers don't shoulder the whole burden i'm also proposing a partnership to rebuild america that attracts private capital to upgrade what our businesses need most, modern ports to move our goods. modern pipelines to w stand a storm. modern schools worthy of our children. let's prove there is no better place to do business than here in the united states of america and let's start right away. we can get this done. and part of our rebuilding effort must also involve our housing sector. the good news is our housing market is finally healing from the collapse of 2007. home prices are rising at the fastest pace in six years. home purchases are up nearly 50%, and construction is expanding again. but even when mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected.
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too many families who never missed a payment and want to refinance are being told, no. that's holding our entire economy back. we need to fix it. right now there's a bill in this congress that would give every responsible homeowner in america the chance to save $3,000 a year by refinancing at today's rates. democrats and republicans have supported it before so what are we waiting for? take a vote and send me that bill. [applause] why would we be against that? why would that be a partisan issue? helping folks refinance. right now overlapping regulations keep responsible young families from buying their first home. what's holding us back?
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let's streamline the process and help our economy grow. these initiatives in manufacturing, energy, infrastructure, housing, all these things will help entrepreneurs an small business owners expand and create new jobs. but none of it will matter unless we also equip our citizens with the skills and training to fill those jobs. [applause] and that has to start at the earliest possible age. you know study after study shows that the sooner a child begins learning the better he or she does down the road. but today fewer than three in 104-year-olds are enrolled in a -- 4-year-olds are enrolled in a high quality preschool program. most parents can't afford a
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quality preschool. for poor kids who need the help the most this lack of access to preschool education can shadow them for the less of their lives. tonight i propose working with states to make high-quality preschool available to every single child in america. [applause] that is something we should be able to do. [applause] every dollar we invest in high quality early childhood education can save more than $7 later on by boosting graduation rates, reducing teen pregnancy, even reducing violent crime. in states that make it a priority to educate our youngest children like georgia, or oklahoma, studies show students grow up more likely to read and
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do math at grade level, graduate high school, hold a job, form more stable families of their own. we know this works so let's do what works and make sure none of our children start the race of life already behind. let's give our kids that chance. [applause] let's also make sure that a high school diploma puts our kids on a path to a good job. right now countries like germany focus on graduating their high school students with the equivalent of a technical degree from one of our community colleges. so those german kids, they're ready for a job when they graduate high school. they have been trained for the jobs that are there. now at schools like ptec in brooklyn, a collaboration between new york public
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schools and city university of new york and ibm, students will graduate with a high school diploma and associate's degree in computers or engineering. we need to give every american student opportunities like this. and four years ago -- [applause] four years ago we started race to the top, a competition that convinced almost every state to develop smarter cure lick lump and higher standards, all about 1% of what we spend on education this year. tonight i'm announcing a new challenge, to redesign america's high schools so they better equip graduates for the demands of a high-tech economy and we'll reward schools that develop new partnerships with colleges and employers and create classes that focus on science, technology, engineering, and math. the skills today's employers are looking for to fill the jobs that are there right now and will be there in the future. now even with better high
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schools most young people will need some higher education. it is a simple fact. the more education you've got, the more likely you are to have a good job and work your way into the middle class. but today skyrocketing costs price too many young people out of a higher education, or saddle them with unsustainable debt. through tax credits, grants and better loans, we have made college more affordable for millions of students and families over the last few years but taxpayers can't keep on subsidizing higher and higher costs for higher education. colleges must do their part to keep costs down and it's our job to make sure that they do. [applause] so tonight i ask congress to change the higher education act so that affordability and value are included in the determining which
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colleges receive certain types of federal aid. [applause] and tomorrow my administration will release a new college scorecard that parents and students can use to compare schools based on a simple criteria, where you can get the most bang for your educational buck. now to grow our middle class, our citizens have to have access to the education and training that today's jobs require. but we also have to make sure that america remains a place where everyone who is willing to work, everybody who is willing to bjork hard has the chance to get ahead. our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants. and right now leaders from the business, labor, law enforcement, faith communities, they all agree, that the time has come to pass comprehensive immigration reform.
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[applause] now is the time to do it. now's the time to get it done. now's the time to get it done. [applause] real reform means stronger border security and we can build on the progress my administration's already made, putting more boots on the southern border than anytime in our history, and reducing illegal crossings to their lowest levels in 40 years. real reform means establishing a responsible pathaway to earned citizenship, a path that includes passing a background check, paying taxes and a meaningful penalty. learning english, and going to the back of the line behind the folks trying to come here legally. [applause] and real reform means fixing
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the legal immigration system, to cut waiting periods and attract the highly-skilled entrepreneurs and engineers that will help create jobs and grow our economy. [applause] in other words, we know what needs to be done and as we speak bipartisan groups in both chambers are working diligently to draft a bill and i apapplaud their efforts. let's get this done. send me a comprehensive immigration reform bill in the next few months, and i will sign it right away and america will be better for it. let's get it done. let's get it done. [applause] but we can't stop there.
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we know our economy is stronger when our wives, our mothers, our daughters, can live their lives free from discrimination in the workplace and free from the fear of domestic violence. today the senate passed the violence against women's act that joe biden originally wrote almost 20 years ago and i now urge the house to do the same. [applause] good job, joe. and i ask this congress to declare that women should earn a living, equal to their efforts, and finally pass the paycheck fairness act this year. [applause] we know our economy's stronger when we reward an
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honest day's work with honest wages. but today a full-time worker making the minimum wage earns $14,500 a year. even with the tax relief we put in place, a family with two kids that earns the minimum wage still lives below the poverty line. that's wrong. that's why i since the last time this congress raised minimum wage, 19 states have chosen to bump theirs even higher. tonight let's declare in the wealthiest nation on earth, no one who works full time should have to live in poverty and raise the federal minimum wage to $9 an hour. [applause] we should on a able to get that done. this single step would raise the incomes of millions of working families.
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it could mean the difference between groceries or the food banks, rent or eviction, scraping by or finally getting ahead. for businesses across the country it would mean customers with more money in their pockets. a whole lot of folks out there would probably needless help from government. in fact working folks shouldn't have to wait year after year for the minimum wage to go up while ceo pay has never been higher. so here's an idea that governor romney and i actually agreed on last year. let's tie the minimum wage to the cost of living so that it finally become as wage you can live on. [applause] tonight let's also recognize that there are communities in this country where no matter how hard you work it is virtually impossible to get ahead. factory towns decimated from
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years of plants packing up. inescapable pockets of poverty. urban and rural where young adults are still fighting for their first job. america is not a place where the chance of birth or circumstance should decide our destiny. and that's why we need to build new ladders of opportunity into the middle class for all who are let's offer incentives to companies that higher americans who got what it takes to fill that job opening but have been out of work so long that no one will give them a chance anymore. let's put people back to work rebuilding vacant homes and run-down neighborhoods. this year my administration will begin to partner with 20 of the hardest hit towns in america to get these communities back on their feet. we'll work with local leaders to target resources and public safety and education and housing. we'll give new tax credits to businesses that higher and invest, and we'll work to strengthen families by removing the financial
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deterrents to marriage for low income couples and do more to encourage fatherhood because what makes you a man isn't the ability to consieve a child, it's having the courage to raise one. and we want to encourage that. we want to help that. [applause] stronger families, stronger communities, a stronger america. it is this kind of prosperity, broad, shared, built on a thriving middle class, that has always been the source of our progress at home. it is also the foundation of our power and influence throughout the world. tonight we stand united in saluting the troops and civilians who sacrifice every day to protect us.
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because of them, we can say with confidence that america will complete its mission in afghanistan and achieve our objective of defeating the core of al qaeda. [applause] already we have brought home 33,000 of our brave servicemen and women. this spring our forces will move into a support role while afghan security forces take the lead. tonight i can announce that over the next year another 34,000 american troops will come home from afghanistan. this drawdown will continue and by the end of next year our war in afghanistan will be over. [applause]
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beyond 2014 america's commitment to a unified and sovereign afghanistan will endure but the nature of our commitment will change. we're negotiating an agreement with the afghan government that focuses on two missions, training and equiping afghan forces so that the country again does not slip into chaos, and counterterrorism efforts that allow us to pursue the remnants of al qaeda and their affiliates. today the organization that attacked us on 9/11 is a shadow of its former self. [applause] it's true different al qaeda affiliates and extremist groups have emerged from the arabian peninsula to africa.
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the threat these groups pose is evolving but to meet this threat we don't need to send tens of thousands of our sons and daughters abroad or to occupy other nations. instead we'll need to help countries like yemen, libya, somalia, provide for their own security and help the allies to take the fight to terrorists as we have in mali. and where necessary to a range of capabilities we will continue to take direct action against those terrorists who pose the gravest threat to americans. applause [applause] now, as we do we must enlist our values in the fight. that's why my administration has worked tirelessly to forge a durable, legal and policy framework to guide our counterterrorism efforts. throughout we have kept congress fully informed of
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our efforts, and i recognize that in our democracy no one schuss judd take my word for it that we're doing things the right way. so in the months ahead i will continue to engage congress to insure not only that our targeting, detention and prosecution of terrorists remains consistent with our laws and system of checks and balances but that our efforts are even more transparent to the american people and to the world. [applause] of course, our challenges don't end with al qaeda. america will continue to lead the effort to prevent the spread of the world's most dangerous weapons. the regime in north korea must know they will only achieve security and prosperity by meeting their international obligations. provocations of the sort we saw last night will only further isolate them as we stand by our allies, strengthen our own missile defense and lead the world
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in taking firm action in response to these threats. likewise the leaders of iran must recognize that now's the time for a diplomatic solution because a coalition stands united in demanding that they meet their obligations and we will do what is necessary to prevent them from getting a nuclear weapon. [applause] at the same time, we'll engage russia to seek further reductions in our nuclear arsenals and continue leading the global effort to secure nuclear materials that could fall into the wrong hands because our ability to influence others depends on our willingness to lead and meet our obligations. america must also face the rapidly growing threat from cyber attacks. now -- we know hackers steal
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people's identities and infiltrate private e-mails. we know foreign countries and companies swipe our corporate secrets. now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, our air traffic control systems. we can not look back years from now and wonder why we did nothing in the face of real threats to our security and our economy. that's why earlier today i signed a new executive order that will strengthen our cyberdefenses by increasing information-sharing and developing standards to protect our national security, our jobs and our privacy. [applause] but now, now congress must act as well by passing legislation to give our government a greater capacity to the secure our networks, and deter attacks.
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this is something we should be able to get done on a bipartisan basis. [applause] now even as we protect our people, we should remember that today's world presents not just dangers, not just threats, it presents opportunities. to boost american exports, support american jobs, and level the playing field in the growing markets of asia, we intend to complete negotiations on a trans-pacific partnership and tonight i'ming we will launch talks on a comprehensive transatlantic trade an investment partnership with the european union because trade that is fair and free across the atlantic supports millions of good-paying american jobs. [applause] we also know that progress in the most impoverished parts of our world enriches us all.
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not only because it creates new markets, more stable order in certain regions of the world but also because it's the right thing to do. you know in many places people live on little more than a dollar a day. so the united states will join with our allies to eradicate such extreme poverty in the next two decades by connecting more people to the global economy, by empowering women, by giving our young and brightest mind new opportunities to serve, and helping communities to feed and power and educate themselves. by saving the world's children from preventable deaths, and by realizing the promise of an aides-free generation which is within our reach. [applause] you see, you see america must remain a beacon to all who seek freedom during this
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period of historic change. i saw the power of hope last year in range goon, in burma, when chi welcomed an american president into a home where she was imprisoned for years. when thousands of burmese lined the streets waving american flags including a man who said, there is justice and law in the united states. i want our country to be like that. in defense of freedom we'll remain the anchor of strong alliances from the americas to africa, from europe to asia. in the middle east we will stand with citizens as they demand their universal rights and support stable transitions to democracy. [applause] we know the process will be messy and we can not presume to dictate the course of
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change in countries like egypt but we can and will insist on respect for the fundamental rights of all people. we'll keep the pressure on a syrian regime that has murdered its own people and support opposition leaders that respect the rights of every syrian. and we will stand steadfast with israel in pursuit of security and a lasting peace. [applause] these are the messages i will deliver when i travel to the middle east next month. and all this work depends on the courage and sacrifice of those who serve in dangerous places, at great personal risk. our diplomats, our intelligence officers, and
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the men and women of the united states armed forces. as long as i'm commander-in-chief we will do whatever we must to protect those who serve their country abroad and we will maintain the best military the world has ever known. [applause] we'll invest in new capabilities, even as we reduce waste and wartime spending. we will insure equal treatment for all servicemembers and equal benefits for their families, gay and straight. [applause] we will draw upon the courage and skills of our sisters and daughters and moms because women have proven under fire that they are ready for combat.
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we will keep faith with our veterans, investing in world class care including mental health care for our wounded warriors. [applause] supporting our military families, giving our veterans the benefits and education and job opportunities that they have earned, and i want to thank my wife michelle and dr. jill biden for continued dedication to serving our military families as well as they have served us. thank you, honey. thank you, jill. [applause] defending our freedom though is not just the job of our
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military alone. we must all do our part to make sure our god-given rights are protected here at home. that includes one of the most fundamental rights of a democracy, the right to vote. [applause] now, when, when any american, no matter where they live, or what their party, are denied that right because they can't afford to wait for five or six or seven hours just to cast their ballot, we are betraying our ideals. [applause] so, so tonight i'm announcing a nonpartisan commission to impositive --
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improve the voting experience in america and it definitely needs improvement. i'm asking two long-time experts in the field who, by the way, recently served as the top attorneys for my campaign and for governor romney's campaign, to lead it. we can fix this and we will. the american people demand it and so does our democracy. [applause] of course what i said tonight matters little if we don't come together to protect our most precious resource, our children. it has been two months since newtown. i know this is not the first time this country has debated how to reduce gun
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violence. but this time it is different. overwhelming majorities of americans, americans who believe in the second amendment, have come together around common sense reform, like background checks that will make it harder for criminals to get their hands on a gun. senators -- [applause] senators, senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets because these police chiefs, they're tired of seeing their guys and gals being outgunned. each of these proposals deserves a vote in congress. [applause]
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now, if you want to vote no, that's your choice but these proposals deserve a vote because in the two months since newtown more than 1,000 birthdays, graduations, anniversaries, have been stolen from our lives by a bullet from a gun. more than a thousand. one of those we lost was a young girl named hadiya pendleton. she was 15 years old. she loved figure newt tons and lip gloss. she was a majorest. she was so good to her friends they all thought they were her best friend. just three weeks ago she was here in washington with her
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classmates, performing for her country at my inauguration, and a week later she was shot and killed in a chicago park after school. just a mile away from my house. hadiya parents, nate and cleo are in this chamber tonight along with more than two dozen americans whose lives have been torn apart by gun violence. they deserve a vote. [applause] they deserve a vote. they deserve a vote. [applause] gabby giffords deserves a vote. the families of newtown deserve a vote.
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the families of aurora deserve a vote. the families of oak creek and tucson and blacksburg, and the countless other communities ripped open by gun violence, they deserve a simple vote. [applause] they deserve, they deserve a simple vote. our actions will not prevent every senseless act of violence in this country. in fact no laws, no initiatives, no administrative acts, will perfectly solve all the challenges i've outlined tonight. but we were never sent here to be perfect. we were sent here to make what difference we can. to secure this nation, expand opportunity, uphold
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our ideals through the hard, often frustrating, but absolutely necessary work of self-government. we were sent here to look out for our fellow americans, the same way they look out for one another every single day. usually without fanfare, all across this country. we should follow their example. we should follow the example of a new york city nurse named men chew sanchez. when hurricane sandy plunged her hospital into darkness, she was not thinking about how her own home was faring. her mind was on the 20 precious newborns in her care and the rescue plan she devised that kept them all safe. we should follow the example after north miami woman named desiline victor. when she arrived a at her
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polling place she was told the wait to vote might be six hours and as time ticked by, her concern was not with her tired body or aching feet, or whether folks like her would get to have their say. an hour after hour, a throng of people stayed in line to support her. because she is 102 years old. and they erupted in cheers when she put on a sticker that read, i voted. [applause] [applause] there is dessill lien.
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desiline. we should follow the example of a police officer named brian murphy. when a gunman opened fire on a sikh temple in wisconsin, brian was the first to arrive and he did not consider his own safety. he fought back until help arrived. and ordered his fellow officers to protect the safety of the fellow americans worshipping inside. even if he lay bleeding from 12 bullet wounds. and when asked how he did that, brian said, that is just the way we're made. that's just the way we're made. we may do different jobs and where different uniforms and hold different views than the person beside us but as americans we all share the same proud title. we are citizens.
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it's a word that doesn't just describe our nationality or legal status. it describes the way we're made. it describes what we believe. it captures the enduring idea that this country only works when we accept certain obligations to one another and of future generations. that our rights are wrapped up in the rights of others and that well into our third century as a nation it remains the task of us all as citizens of these united states to be the authors of the next great chapter of our american story. thank you, god bless you, and god bless these united states of america. [applause] neil: all right. true to form the president did embrace a number of initiatives tonight. he rarely used word spending but he did say is that he aware of the deficit but he is also aware that there are a variety of ways to close
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it beyond hacking things like medicare and medicaid in a seminal moment on the night he clearly laid out the broadest blueprints of what he's looking for to address all of this and that is closing billions of it being tax loopholes on the wealthiest americans and on corporations but precious little in terms of additional cuts in programs. so just as was predicted, pretty much as his critics have contended more of the same. whether that is fair or even right, the fact of the matter is the president believes the $4 trillion effort to pare spending over the next 10 years is as far as he is going to go. that already triggered this attack from the u.s. chamber of commerce. its president and ceo, midway through the president's remarks saying, the question is whether the totality of the president's agenda is designed to grow our economy or simply to grow the government. more spending, higher taxes,
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massive federal rule making will not put america back to work or stop the slide of the middle class incomes. to revive our economy, restore confidence and put millions of unemployed americans back to work jobs and growth can not be an occasional priority but a top priority at all times. now that was coming in from the chamber halfway through the president's speech. obviously very concerned about a moment that the president blew, essentially, to hear this business titan group say it, an opportunity to set an agenda, to attack government largess but the president only looking at presumably, according to many who have been fearing this, more tax hikes along the road, something that he says both parties have already agreed to when they said they would try to close loopholes and the like to prevent many of the wealthiest among us from paying any. many of the wealthy already saying we already paid up. but the president is clearly saying, i'm not done. we're going to get the
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latest from statuary hall from rich edson who is there as the president makes his way out of the room. this will take a few good minutes as he leaves the chamber. no big surprises here. i think, you know, to peter barnes credit earlier, that scoop about raising the minimum wage we will touch on with him. he did not feel a need tonight to start hacking spending. in fact he proposed more of it, what do you think of that? >> and he also called for tax reform and entitlement reform. yet when you look at the specifics where the administration has been willing to go on tax reform and enlightment reform, as though it doesn't really go far enough for a number of republicans who control the house. i don't think, and i think you're right, neil, this changed the paradigm in washington at all. what you got is essentially the sam type of theme that you got from the administration throughout the campaign and throughout his second inaugural address. some of the words and ways he played things tonight,
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minimum wage versus ceo pay. seniors and working families versus the wealthiest and most powerful. corporate profits at an all-time high versus wages that have barely budged over the last decade. he we have that theme as he we have it into the campaign or explicit about it during the campaign. it is the same type of discussion we've been of having in washington between democrats and republicans. there is really no change here. no way that you could see this forged a bipartisan compromise between democrats and republicans on capitol hill. neil: peter barnes, the president talked a great deal about a number of new initiatives, green initiatives, strategic invests in areas that he thinks could marshall our resources and compete with the chinese in areas where they have plenty of government sponsored initiatives and he wants the united states to do the same. as we await for marco rubio's republican response i want to get your thoughts, peter, on something he said about this, all these initiatives. let me repeat. nothing i'm proposing tonight should increase our
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deficit by a single dime. it is not a bigger government we need but a smarter government that sets priorities and invests in broad based growth. what do you make of that? >> well, you know, he is going to get into a fight over whether or not his proposes will in fact increase spending further and even if they don't, how do you pay for these things inside of keeping the deficit static? and of course, that has been the battle rich was just referring to it, that we've been seeing here going back to the last election, the election before that, and the president, as you said, wants to pay for some of this by, through tax reform, closing tax loopholes, trying to raise more revenue out of the wealthiest americans. he did make a reference to the "buffett rule" once again. we saw him propose that in the last state of the union address. it didn't get very far, you know, through, to have folks
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who make over a million dollars pay at least 30% of the, of their income above that in taxes, neil. neil: peter barnes, thank you very much. we're waiting for marco rubio's response. many people asked, you know, as you watch continuing coverage of this, what diffentiates fox business's coverage from, well, everyone else's for one thing. screen for one thing. us for one thing. the ticker, for another thing. dow futures are up on this. s&p futures are up on this. a lot of stocks are trading abroad are trading up as we get tantalizing close to a new record on the dow. i find it interesting, former new hampshire governor john sununu is with us. we're looking how markets are reacting to that and showing you what is going on. the markets are worried about a president who will be spending more, john and committing more capital and digging in deeper, you and many of your republican colleagues put it, they do
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have a funny way of showing it, or are they missing something? what do you think? >> well i think they're looking at the spending side here and thinking there will be a short-term jolt for some segments of the economy. i thought it was interesting the president started off with a, historical note about kennedy 51 years ago talking about the fact that they had to cooperate but if he had really done his history, analysis, he would have noticed that kennedy also asked for massive tax cuts at about that time. neil: that's right. >> because the economy was dying. and the president should learn that the kennedy tax cuts like the coolidge tax cuts, like the reagan tax cuts, are what this economy needs. not tax increases. he is using tax reform as a euphemism for more tax increases. and i thought it was interesting to note that every time, you know, as we expected, every time he talks about spending, he is
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talking about investments. i thought that it was interesting that the phrase, shovel-ready from one of his previous state of the union addresses, now became, fix it first. but as he found out that shovel-ready didn't work, i think he is also going tt find out that this concept of fix it first has a much longer time constant than he thinks. and i --. neil: the deficit thing, john. i really want to focus on this. this surprised me, one thing not to address it. it is another to all but dismiss it. quoting from the president, most of us agree a plan to reduce the deficit must be part of our agenda but let's be clear, again quoting the president, deficit reduction alone is not an economic plan. that's remarkable. >> yeah. he actually has no sense at all of the devastation that has been caused by a trillion dollar deficit in each of the last four years. and he has no sense at all in my opinion of what a budget is. he hasn't gotten a budget
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passed in four years. he talks about budget reform but how can you have budget reform if you don't follow the budget law that congress and the president before him have followed? this was really, as much as i expected it to be a bread and circuses and frankly a class warfare speech and a deficit-ignoring speech, this was worse than my wildest fears were. neil: you know what i do worry about a little bit? whether you're pro or con having the federal government raise the minimum wage, the president talked about 19 states have an age in excess of that minimum. say the federal government would do that, it would compel the states all the more and a spiraling cycle already ensues. for businesses already hard-pressed to putt added onus on them, now you will have to pay a lot higher minimum wage. in order to address that only alternative to have fewer minimum wage workers, right? >> historically every time
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the minimum wage have gone up the people hurt the most are people at the bottom of the wage scale because businesses who, whose workers segmentation is at the bottom of the scale stop hiring and you think at a time when unemployment is as bad as it is, that's a silly thing to do. and yet, he, you know he really wasn't looking for things to fix real problems. he was looking for red tore cool brownie points. from the minimum wage issue to i will issue executive orders to deal with climate change. to some class warfare phrases that the previous speaker noted, all of those things were designed to get brownie points from the far left and unfortunately they were not designed to fix real problems. neil: you know i guess keep coming back, maybe i'm like a dog with a bone on this, how totally dismissive the president was, and peter barnes, i will expand this to you, on this whole urgent need, if urgent at all, to cut the deficit, by saying
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things like, the deficit reduction alone is not an economic plan. of course we all know that but to say it is not even a priority and to say that $4 trillion you have by and large stopped what you will do in this regard, that i would imagine would send potential rumbles through these very markets that are soaring if the message is, what you see, folks, is kind of what you got. that's about all i'm going to do. >> yeah, and but part of this also, neil, a preemptive move on the part of the president. we'll be hearing from marco rubio in just a moment rubio here in just a moment. and the republican argument has been, in fact, that stabilizing the debt and getting the deficits down are a good economic plan. so trying to counter that argument before we hear from marco rubio and continuing reaction we are getting tonight from republicans to say the president is wrong on that issue.
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deficit-reduction helps to calm the market, helps provide certainty, helps to keep interest rates low. neil: you know, west virginia moderate democrat, if you could hear, he was saying there was a voice months of the more moderate democrats to sort of of the nt and put the press some republicans. we might want to go higher. we might want to see more spending cuts. that does not seem to be the consistent push of a more prominent democrats led by the president, nancy pelosi, harry reid. therein lies the potential problem where the more moderate democrats are going to have to step aside and stand down. >> and you look at that $4 trillion number. in the president's proposal is also including things like interest savings, more savings that are set to wind down anyway, and you look at the $4 trillion. it really only stabilizes debt to gdp ratio over the next decade or so off panama. the entitlement spending,
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medicare, medicaid, not doing their analysis of what the ten years after the next decade look like when it comes to the full entitlement boom that goes on from there, there are some major deficit and debt problems that are going to hit the federal budget in just the next 10-15 years alone. so the whole debate as to how big a problem deficit reduction is, jay carney a couple of weeks ago said it is not a goal of itself. just deficit reduction. i think the president clarified that a little bit this evening with a comment you just mentioned, neil. there is that question about whether and that democrats are all that serious about deficit reduction going much further. the republicans put a number, saying we want to get as close as balanced as possible. that is what they're writing right now. neil: we should point out, the president wants to avoid this constant crisis and brinksmanship ahead of what could be another deadline in two weeks. but i see nothing here that will
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avoid that. >> and the conversations we're having right now, at least in congress on deficit reduction or the sequestered to get rid of that deficit reduction, we are not even close to the deal right now. neil: okay. thank you very much. the republican response falls on 188. running for president and self in four years. marco rubio. >> good evening. i'm marco rubio. i am blessed to represent florida in the united states senate. let me begin by congratulating president obama on the start of his second term. tonight i have the honor to responding to the state of the union address on behalf of my fellow republicans, and i am especially honored to be addressing our brave men and women serving in the armed forces and diplomatic posts around the world. he may be thousands of miles away, but you are always in our prayers . the state of the union address is always a reminder of how unique america is.
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since so much of human history most people were trapped in stagnant societies were a tiny minority stay on top and no one else even had a chance, america is exceptional because we believe that every life that every stage is precious, and everyone everywhere has a god-given right to go as far as their talents and our report take them. like most americans, for me, this idea was personal. my parents immigrated here in pursuit of the opportunity to improve their life and to give their children the chance at an even better one. they needed to the middle-class. my dad, working as a bartender and my mother as a cashier and made. i did not merit any money from them, but i inherited something far better. the real opportunity to accomplish my dreams. this opportunity to make it to the middle-class or beyond no matter where you start out and life is not bestowed on us from washington. it comes from a vibrant, free economy where people can risk their own money to open a
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business, and when they succeed they hire more people who, in turn, investors spend money they make helping other start a business and create jobs. presidents and both parties from john f. kennedy to ronald reagan have known that our free enterprise economy is the source of our middle-class prosperity. but president obama, he believes it is because of our problems, that the economic downturn happen because our government did not tax enough, spend enough, or control enough and therefore, as you are tonight, his solution to virtually every problem that we face is for3 washington to tax more, borrow more, and spend more. this idea that our problems were caused by a government that was too small is just not true. in fact, the major cause of our recent downturn was a housing crisis created by reckless government policies and the idea that more taxes and more government spending is the best way to help hard-working middle class taxpayers, that is an old idea that has failed every time it has been tried.
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no government will help you get ahead. it will hold back. more government is not going to create more opportunities, it's going to limit them. more government is not goinggto inspire new ideas, new businesses in the private sector jobs, it's going to create uncertainty because more government breeds complicated rules and laws that small businesses cannot afford to follow because more government raises taxes on employers who then passed the cost on to their employees, fewer hours, lower pay, and even layoffs and because many government programs that claim to help middle-class often end up hurting them. for example, obamacare was supposed to help middle-class americans afford health insurance. now some people losing their health insurance they're happy with and because obamacare created expensive requirements for companies with more than 50 employees, now many of these companies are not hiring, not only that, they're being forced to lay people off the switch from full-time employees to
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part-time workers. now, does this mean there is no role for government? of course not. it plays a crucial part in keeping a safe, enforcing rules, and providing security against the risks of modern life. government's role is wisely limited by the constitution and it cannot play a central role when it ignores those limits. there are valid reasons to be concerned about the president's plan to grow our government, but any time anyone opposes the president's agenda he and his allies usually respond by falsely attacking the motives. when we point out that no matter how many job killing was we passed our government can control the weather, he accuses us of wanting dirty water and dirty air. when we suggest we strengthen our safety net programs by giving states more flexibility to manage them he accuses us of wanting to leave the elderly and disabled to fend for themselves and tonight he even criticized us for refusing to raise taxes to delay military cuts, cuts
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that were his idea in the first place. his favorite attack of all is that those of us who don't agree with them only care about rich people. mr. president, i still live in the same working-class neighborhood i grew up in. neighbors are not millionaires, they're retirees to depend on social security and medicare. workers who have to get up early tomorrow morning and go to work to pay the bills, immigrants who came here because they were stuck in poverty and their countries with a government dominated the economy. the tax increases and deficit spending you propose will hurt middle-class families, cost them their raises, cost and their benefits and may even cost and their jobs, and it will hurt seniors because it does nothing to save medicare and social security. mr. president, i don't oppose your plan because i want to protect a rich. i oppose the plan because i want to protect my neighbors, hard-working middle-class americans who don't need us to come up with a plan to grow the government.
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they need a plant that grows the middle-class. economic growth is the best way help the middle-class. unfortunately, our economy actually shrank during the last three months of 2012, but if we can get the economy to grow at just 4% to year it would create middle-class jobs, and it would reduce our deficits by almost $4 trillion over the next decade tax increases cannot do this. raising taxes will create private sector jobs, and there is no realistic tax increase that could lower our deficit by almost $4 trillion. that is why i hope the president will abandon his obsession with raising taxes and instead work with us to achieve real growth in our economy. one of the best ways to encourage growth is through our energy industry. of course solar and wind energy should be a part of our energy portfolio, but also blessed us with an abundance -- abundance of coal and natural gas. instead of wasting more taxpayer
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money on so-called clean energy companies let's open up more federal lands were safe and responsible exploration and reformer energy regulations so that they are reasonable and based on common sense. phreaking our energy industry it will make us energy independent, create middle-class jobs and it will help bring manufacturing back from places like china. simplifying our tax cut will also help the middle class because it will make it easier for small businesses to hire and grow, and we agree with the president to should lower our corporate tax rate which is one of the highest in the world so that companies will start bringing money and jobs back here from overseas. we can also help grow our economy if we have of legal immigration system that allows us to attract and the sunlight the world's best and brightest. we need irresponsible, permanent solution to the problems of those who are here illegally, but first we must follow through on the broken promises of the past to secure our borders and enforce our laws.
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helping the middle-class grow also requires an educational system that gives people the skills today's jobs entailed in the knowledge that tomorrow's will require. we need to incentivize local school districts to offer more advanced placement courses and more vocational and career training, and we need to give all parents, especially the parents of children with special needs the opportunity to send their children to the school of there choice. and because college tuition costs have grown so fast, we need to change the way we pay for higher education. i believe in federal financial aid. i could not have gone to college without it. it's not just about spending more money. it is also a strengthening in modernizing them. the 21st century workforce should not be forced to accept 20th-century education solutions . today's students are not only 18 year olds, they are returning veterans, cinco parents to decide to get the education they need to earn a decent wage and workers who have lost jobs that are never coming back and need
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to be retrained. we need student aid that does not discriminate against programs of nontraditional students like online courses or degree programs that give you credit for work experience. when i finished school i owed over $100,000 in student loans, had been a paid up just a few months ago. today many graduates face massive student loans. we must give students more information on the cost and benefit of the student loans they're taking out. all of these measures are key to helping grow the economy. we will be able to sustain a vibrant middle class unless we solve our debt problem. every dollar our government borrows money that is not being invested to create jobs, and the uncertainty created by the debt is one reason why many businesses are not hiring. the president loves to blend the debt on president bush, but president obama has created more debt in four years than his predecessor did in eight. the real cause our debt is that our government has been spending
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$1 trillion more than it takes in every year. that is why we need a balanced budget amendment. the beast obstacle a balancing the budget are programs for spending already locked in, one of these programs as medicare, especially important to me. provided my father the carry need to battle cancer and ultimately to die with dignity and pays for the care my mother receives right now i would never support changes for medicare that would hurt seniors like my mother, but anyone who is in favor of leaving medicare exactly the way it is right now is in favor of bankrupting you. republicans have offered a detailed and credible plan to help save medicare without hurting today's retirees. said a play politics with medicare while the -- when is the president going to offer his detailed plan to save it. tonight would have been a good time. we face the challenges as well. we are all heart broken by the recent tragedy in connecticut. with most effectively be able to
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-- unconstitutionally undermining the second amendment rights of law-abiding americans is not the way to do it. on foreign policy, america continues to be indispensable to the low blow -- global liberty, poverty, and safeguarding human rights. the world is a better place when america is the start station on earth, but we cannot remain powerful if we don't have an economy that can afford it. in the ssort time that i have been here in washington nothing has frustrated me more than false choices like the one the president laid out tonight. the choice is not just between big government or big business. what we need is accountable, efficient, effective government that allows small and new businesses to create more middle-class jobs. we don't have to raise taxes to avoid the president's devastating cuts to our military. republicans have passed a plan that replaces these cats with irresponsible spending reforms in order to balance our budget the trust is not have to be either has it -- higher taxes
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are dramatic benefit cuts for those in need. instead we should grow our economy so we could create the taxpayers, not taxes and so our government can afford to help those who truly cannot help themselves and the truth is every problem cannot be solved by the government. many are caused by the moral breakdown and society and the answer to these challenges lie primarily in our families and faith, not politicians. this minor differences, another both republicans and democrats love america. i pray we can come together and solve our problems because the choices before us could not be more important. if we can get our economy healthy again our children will be the most prosperous americans ever, and if we not we will forever be known as the generation responsible for america's decline and a time when one showdown after another ends in short-term deals that do little or nothing about our real problems, some are starting to believe that our government
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leaders just can't or won't make the right choices and more. our strength has never come from the white house or the capital. it has always come from our people, people united by the american idea that if you have a dream and you're willing to work hard, nothing should be impossible. americans have always celebrated in been inspired by those who succeed, but it is the dreams of those who are still trying to make it that said our nation apart tonight all across this land parents will hold their newborn children and their arms for the first time. many of these parents -- for many of these parents life has not gone the way they planned. maybe they were born under circumstances they found difficult to escape. maybe they made mistakes along the way. libya mothers all alone, father of their jobs long gone. tonight when they look into the eyes of the job for the first time their lives will change forever with your parents sign
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you and what my parents saw in me, all the hopes and dreams that once had for themselves. this dream of a better life for their children is double parents everywhere. politicians here and throughout the world have long promised that more government can make those dreams come true, but we americans have always known better. from our earliest days we embraced economic liberty and because we did america remains one of the few places on earth where dreams like these even have a chance. each time our nation has faced great challenges what has kept us together was their share hope for a better life. now let that help bring us together again to solve the challenges of our time and ride the next chapter in the amazing story of the greatest nation man has ever known. a key for listening. god bless all of you.
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god bless our president and may god continue to bless the united states of america. neil: all right. marco rubio, a leading republican response with probably the premier line being, mr. president, i don't oppose your plan because i want to protect the rich. i oppose your plan because i want to protect my neighbors. he was on to say more government is going to help you get ahead. it's going to hold you back. more government is not going to create more opportunity, it's going to limit them. two very different agendas, two very different visions of the role of government going forward. reaction now from democratic congressman, a key member of the house budget committee, a ranking member there. congressman, good to have you -- >> good to be with you. >> i want to touch on essentially that inherent difference in the republican and democratic approach. marco rubio, a government, the president. what do you think of that?
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>> well, i listened very carefully to the president's speech and just no to the speech from marco rubio. the president was very clear that government action is not the answer to all our problems. in fact, the united states, we value individual initiative, but the president was equally clear that there are some things we can do better by working together. for example, investing in our infrastructure, our roads and bridges and highways, traditionally that has been a bipartisan public investment, investing in basic research the four companies were willing to themselves invested it because it is too speculative. at the president's call for new investments in science and research to help our economy was really important, so the question is not more government or less government. the issue is government playing inappropriate role in those places where we are better off working together. neil: can you over do that,
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congressman? uni talk about infrastructure many, many times and that they think the idea of fixing roads and bridges is fine, but between surtaxes and gas taxes and special transportation excise taxes and a host of others you would think all of roads would be paved with gold right now. i don't know whether that requires a lot box, but invariably these infrastructure funds never go to the infrastructure fixes. why would now be any different? why would more potentially good money after bad make any difference at all? >> well, actually, neil, the transportation dollars are going to transportation projects. the problem is, there's a shortfall right now. so we get of failing grade from non-partisan groups like the american society for civil engineers. look, the issue is, there are certain parts of our economy
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like basic scientific research which helped launch the space program which led to very many important developments, including money that helped see the foundation -- neil: but that is when we had money, congressman. we don't have money. became strategically invest that we don't have. i understand we can create money, but my worry, congressman, you and i have gotten into this before. i heard very little out of the president about whether the debt is such a big issue and we should address it at all and when it does come a closing loopholes and the like maybe that is the way to close these next budget goals that may be, you know, go after tax loopholes and special breaks and allowances. very little in terms of cutting spending, and the president seemed to be saying the 4 trillion a roughly agreed to come even though no one agree to anything yet is about as far as i'm going to go. did i hear that right? >> well, i heard very clearly the president say, for example, when it came to medicare savings
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that his proposal would equal the medicare savings from the bipartisan some symbols commission as you head into the next decade. in other words, his plan will be more aggressive in terms of the net cost curve. the president is also clear that he won't do it simply by transferring those rising health care costs on to the backs of seniors which is what the republican right in arubia voucher plan would do but he talked about other ways of doing it, for example, asking the pharmaceutical industry to pay greater rebates and changing the way we incentivize. neil: to you think in the scheme of things, you know these numbers probably better than most anyone, that is going to out take at debt that is now eclipsing 16 trillion that under the most ambitious plan to turn 4 trillion over ten years is still going to be 20 trillion plus in ten years? is there anything you heard tonight on either side that encourages you to say, we will
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ever get a handle on our debt or have we just given up? >> we should definitely not give up. our long-term deficits and long-term debt are significant challenges for the economy. we have to remember that deficit is important to the extent it has a negative impact on economic growth. so our goal has to be in the near term to make sure that our deficits are not growing faster than the economy and to stabilize our debt. but the focus should be as the president said on building a middle-class, making sure we have a stronger middle-class, making sure that wages are going up, not just for folks at the very top, but for middle-class americans. neil: more taxes are on the way. what you seem to be saying, look, we gave them of the tax thing. but it seems like you're saying, more we could do on the tax rate in more we will do. is that right? >> let me ask you, neil.
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you know the speaker, like mitt romney before him, talked about how there are all these tax breaks and the coach, lou polls. so mitt romney talked about all this. neil: absolutely. >> they are still there. neil: that cannot deny they are still there. i'm saying, it is far easier for you and others to say go up to those loopholes, tax breaks much more aggressively than you would going after spending. that's what i fear your st. >> no, that is not what i am saying. i support a balanced approach meeting reducing -- neil: is not balanced, congressman. it does not appear to be balance the ball to me. >> wait a minute. as part of the budget control act and other measures we have taken, we reduce spending by one half trillion dollars by placing caps on spending. that is 100 percent spending. now that this booklet agreement to avoid the fiscal cliff resulted in $600 billion in additional revenue for higher income -- neil: all that is doable and all that is going to happen?
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>> no, so we need to build on that model. we need more targeted cuts, not these across-the-board sequester is that will hurt the economy. that is a dumb way to deal with this. we need target, predictable cuts and we should also cut the tax breaks in the code which after all are just a way to spend money through the tax code. the other kind of year marks, so the speak. neil: thank you very much. good seeing you again. >> always good to be with you. neil: back and forth on this fair and balanced bank. michael reagan. what do you think your dad would think of this president's address? >> i think he would have thought the marco rubio address was absolutely on target, and i will tell you, it absolutely was. he would be so proud of marco rubio. he would look to the president's address and sell more of the same. i tweeted, let's put people to work by joining the atlantic with the pacific oceans and having one giant bucket brigade. let's put people to work that
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way. the president of the united states needs to understand, he can do nothing until the economy is fixed. my father understood this, as you well know, neil. he could not deal with russia in the issues of what was going on in the soviet bloc until the fix the economy of the added states of america which, by the way, was growing at 7 percent, i think, at this time in his second administration. unless we fix the economy your first we're not going to be able to do anything. neil: well, your father has recognized that -- maybe he went too far, accepted and solid revenue hikes. you argue that your dad police will lead to much, but in other words he will then yielding more in the end when said that taxes were lower. he was right about that, but is this president going to reverse anything you have seen from his first term? is this president going to do
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anything differently like your father did to try to make rapprochements to the middle? >> no, he is not because ronald reagan understood you had to go to the metal, as bill clinton understood you had to go to the middle. neil: you don't see anything out of barack, the show's any of that? >> did you hear anything like that tonight? no. what he is going to do is write a ship that he believes has always been wrong that somehow the rich are to blame. my father in 1964. the fat man standing next to the thin man. that is sub barack obama's sees the world. and so what he is trying to do is blame the rich or blame that person who is doing well for all the woes of the world, and he is going to take from that person and give to the other. if i have a moment, i was talking to a young girl today who works at starbucks, 21 years old and just bought a new car in december.
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she was in tears because a less per month than what she made last year. that was tough for her to make ends meet. there was nothing in tonight's speech to talk that 21-year-old girl or my daughter, ashley, who is making 38-$40,000 per year as a schoolteacher who is now making $24 a year less because they were told we're going to tax the rich and every single one of them are looking and trying to make ends meet, and there is nothing in the speech tonight by barack obama to alleviate the pain that my daughter in that young girl in millions of others are feeling in the paychecks that they are getting. now they can't afford to get that tv set or make that payment other car. nothing in all. neil: thank you very much. let's continue to gauge. your futures market reaction. largely up. lars the concerned about the spending issues brought up tonight. what that might mean historically for this president.
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you know, presidents are not, you know, totally naive about what is going on in the markets. this president alluded to the market's strength of late. how much you think that will play into what he is going for? >> i don't think things are going to change much because of the speech. i think it was pretty predictable. i do feel that the minimum wage issue light kit employers wondering. the president seems to be behind raising it. that man a little bit of news tonight. neil: now is the time for that? this is the argument. there has never been time for that. they argue, particularly now especially when he trumpets more charges and fees might be coming their way and closing loopholes that some of them might take advantage of regardless they're going to get soon begin. >> i was surprised. part of it that surprised me tonight. so we will see if it tracks. at that the immigration reform,
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just reading body language, thought there could be, after tonight, some bipartisan agreement on it. there seemed to be more applause coming from conservatives on that. on the other hand, the climate change part of president barack obama. he put a paragraph in climate in the inaugural ball by tonight and he went after oil companies tonight. and so it made me question. at that he was going to back the keystone pipeline. after tonight's speech enough so sure. neil: i got the same thing. and did not hear much in terms of overcharge. michael reagan, overtures that his dad made, tip o'neill on the left to try to broker some agreements to try to help in the next four years. that might happen with this president. it did not tonight. >> i think the inaugural, the second inaugural was a left speech and this was left-center. but this -- neil: this was left-center? this was left-center?
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i think you are on neptune may be. i know what you're saying. man, i did not see much olive branch holding. >> well, just with the talk about our armed forces winding down in afghanistan and then also, you know, he is really working and the issue of women in talking about women in the military. it was a boiler plate democratic evening, and i think the gun control, the president became his most passionate. neil: well, i know of those issues. one of the greatest historians ever. the most dramatic issue is this debt. maybe too much of the numbers, but i say as much. barely any reference at all, barely carry the world. should i be concerned? >> i thought it would be a little more. it was there. a couple of points, but this was more of a layout of his whole


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